did_multiplegt uing individual fixed effect

[Raphael George]

Hello, Im running a did model with individual fixed effects on two waves of a longitudinal survey. My treatment is the death of a HH member. I have a 7-year gap between wave 1 and wave 2. So the death of the individual can happen at any point in time in the gap. I also have data on how many years it has been since the individual passed away(point of reference wave 2). But the outcome variable is only available at two time periods ie at the year when wave 1 took place and when wave 2 took place.
1)So here do I have to be wary of treatment heterogeneity?
2) I have individual fixed effects so, for the group variable do I just hadd the individual ID or should I take it a level higher say HH ID.

 did_multiplegt outcome IndividualID WAVE treated, cluster(PSUID)  controls (X)

3)Or should I use the dynamic verison

 did_multiplegt outcome IndividualID WAVE treated,  robust_dynamic dynamic(1) breps(100) cluster(PSUID)  controls (X)

[Jeff Wooldridge]

You can't do anything fancy here. You have T = 2. I would view the "treatment" as nonbinary and use the years-since-death as the treatment variable. This variable should be zero in the first time period.

xtreg y i.wave i.years_since_death, fe vce(cluster id)

Equivalently, just regress the change in y on a constant and i.years_since_death and include any other controls. You can add controls to the FE, too.